We have published What to expect in pensions law in 2015, a look ahead at likely legal developments in the coming 12 months that pensions practitioners need to know about. This includes a summary of the key potential legal highlights, forthcoming cases and a full breakdown of other expected legal and regulatory changes. Links are provided to our legal updates and other materials for more detailed information about each subject.

The Department for Work and Pensions (DWP) has published the government's response to the consultation on the draft National Employment Savings Trust (Amendment) Order 2015 and the draft Transfer Values (Disapplication) (Revocation) Regulations 2015.

The Department for Work and Pensions (DWP) has published for consultation the draft National Employment Savings Trust (Amendment) Order 2015 and the draft Transfer Values (Disapplication) (Revocation) Regulations 2015.

The Department for Work and Pensions has confirmed that the European Commission has agreed to the government's proposal to remove the restrictions on annual contributions and transfers that apply to NEST.

The Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2014 (SI 2014/540), which contain changes to the Transfer of Employment (Pension Protection) Regulations 2005 (SI 2005/649), have been laid before Parliament and come into force on 6 April 2014.

The Society of Pensions Consultants has informed its members of confirmation from the DWP that it intends to publish a consultation response on the draft Transfer of Employment (Pension Protection) (Amendment) Regulations 2013 in February 2014.

The Automatic Enrolment (Miscellaneous Amendments) Regulations 2013 (SI 2013/2556) have been laid before Parliament and the DWP has published its response to the consultation on technical changes to automatic enrolment.

The DWP has updated its guidance documents for employers choosing to meet their auto-enrolment duties by certifying that their defined benefit, money purchase or hybrid pension scheme satisfies the quality requirements.

The Department for Work and Pensions (DWP) has published Supporting automatic enrolment: A call for evidence on the impact of the annual contribution limit and the restrictions on transfers on the National Employment Savings Trust.

The Occupational and Personal Pension Schemes (Automatic Enrolment) (Amendment) (No. 3) Regulations 2012 (SI 2012/2691) were made on 25 October 2012 and came into force on 1 November 2012. (free access)

The Department for Work and Pensions (DWP) and the trustee of the National Employment Savings Trust (NEST) have published consultation papers proposing a series of detailed amendments to the order and rules governing NEST.

The Department for Work and Pensions (DWP) has confirmed that the requirement on employers to designate a stakeholder pension scheme is likely to be abolished on a single date. The current intention is for this to be 1 October 2012.

The Employers' Duties (Implementation) (Amendment) Regulations 2012 (SI 2012/1813) have been laid before Parliament and the DWP has published its response to the consultation on revised implementation proposals for workplace reform.

The Department for Work and Pensions has published its response to the consultation on the Occupational Pension Schemes (Disclosure of Information) (Amendment) Regulations 2012 (SI 2012/1811), which have been made and will come into force on 1 October 2012.

The Department for Work and Pensions (DWP) has published the Occupational and Personal Pension Schemes (Automatic Enrolment)(Amendment) (No.3) Regulations 2012, and the government response to the consultation exercise on the draft regulations.

The Pensions Act 2011 (Commencement No.3) Order 2012 (SI 2012/1681) and the Pensions Act 2008 (Commencement No.13) Order 2012 (SI 2012/1682) came into force on 30 June 2012. These statutory instruments bring into force key provisions of the new auto-enrolment regime. (free access)

The DWP has published guidance documents for employers choosing to meet their auto-enrolment duties by certifying that their defined benefit, money purchase or hybrid pension scheme satisfy the quality requirements.

The DWP has published for consultation draft regulations implementing the revised timetable for auto-enrolment announced earlier this year. (For details of the subsequent consultation response, see Legal update, Auto-enrolment: revised staging dates finalised.)

HMRC has published the Finance Act 2004, Section 180(5) (Modification) Regulations 2012. NOTE: These regulations came into force on 1 June 2012 in respect of any payments made on or after 6 April 2012 - the Finance Act 2004, Section 180(5) (Modification) Regulations 2012 (2012/1258).

The Pensions Regulator has issued an updated version of its step-by-step guidance on auto-enrolment duties and the DWP has issued a Workplace Pension Toolkit with information on auto-enrolment for employers. (Free access.)

The Department for Work and Pensions (DWP) has published a response to its July 2011 consultation exercise on amendments to regulations implementing pension auto-enrolment. Four sets of draft regulations have been finalised.

Two commencement orders have been made, The Pensions Act 2008 (Commencement No. 11) Order 2011 and The Pensions Act 2011 (Commencement No. 1) Order 2011, bringing into force certain provisions of those Acts on 1 and 3 January and 6 April 2012.

The Pensions Regulator has published Six principles for good workplace DC. This is part of its ongoing dialogue with the pensions industry aimed at improving the design and governance of workplace defined contribution schemes.

The deadline for practising solicitors in England and Wales to complete their continuing professional development (CPD) is 31 October 2011. CPD points can be gained by listening to PLC Pensions' podcast, Getting ready for auto-enrolment: key pensions issues.

The Department for Work and Pensions (DWP) has published a consultation paper entitled Workplace pensions reform: Completing the legislative framework for auto-enrolment, together with accompanying draft legislation and guidance.

The Pensions Bill 2011, which contains provisions on auto-enrolment, section 251 and the switch to CPI, has been introduced into Parliament. For more information see Practice note, Pensions Bill 2011: overview, which sets out the main provisions of the Bill and highlights some action points for practitioners.

On 22 March 2010, the National Employment Savings Trust Order 2010 (SI 2010/917) was made and will come into force on 5 July 2010. The final version of NEST rules have also been published by the Department for Work and Pensions.

The Department for Work and Pensions (DWP) has published information on the staged introduction of the requirement for employers to automatically enrol eligible "jobholders" in a qualifying pension scheme and make minimum pension contributions from 1 October 2012.

Eleven sets of regulations relating to implementation of the 2012 pension reforms have been laid before Parliament and the Department for Work and Pensions has issued a response to its September 2009 consultation exercise on the draft versions.

The National Association of Pension Funds, the Pensions Policy Institute, the Investment Management Association and the Society of Pension Consultants have each published their response to the Personal Accounts Delivery Authority's consultation document on investment.

The National Association of Pension Funds and Local Government Employers, the body representing employers in the Local Government Pension Scheme, have published their responses to draft regulations issued for consultation by the Department for Work and Pensions concerning the forthcoming automatic enrolment requirements.

The Department for Work and Pensions is consulting on two sets of draft regulations relating to Personal Accounts, the draft Pensions (Automatic Enrolment) Regulations 2009 and the draft Pensions Regulator (Delegation of Powers) Regulations 2009.

As well as implementing the new automatic enrolment and compulsory employer contribution rules from 2012, the current Pensions Bill contains several additional provisions affecting occupational and personal pension schemes. In Pensions Bill 2007/08: a quick guide, we summarise the key aspects of the Bill. The Bill completed committee proceedings in the House of Lords in July 2008, and its report stage has been fixed for 7 October 2008. We will keep the guide updated to reflect any further changes to the Bill between the report stage and the date the Bill receives Royal Assent.

A new version of the Pensions Bill has been published, following completion of the committee stage in the House of Lords. The report stage has been fixed for 7 October 2008. Among final government amendments agreed were a measure correcting a legislative oversight that occurred when the return-of-surplus rules in section 37 of the Pensions Act 1995 (PA 1995) were revised by section 250 of the Pensions Act 2004 (PA 2004). Before the PA 2004 was enacted, the return-of-surplus rules in section 37 of the PA 1995 exempted certain administrative and other payments from the strict conditions that had to be satisfied for trustees of occupational pension schemes to make payments of surplus to employers. Introducing the amendment in the Lords, government minister Lord Tunnicliffe reported that this exemption was "inadvertently not carried forward" when the rules were revised by the PA 2004. The amendment to the latest Pensions Bill rectifies this position: new section 37(1A) of the PA 1995 provides that the rules do not apply to the authorised employer payments listed in section 175(c) to (f) of the Finance Act 2004. Pensions minister Mike O'Brien also confirmed that the regulation-making provision in clause 120 of the Bill relating to the Financial Assistance Scheme (FAS) will allow the government to widen the FAS to include a small number of schemes which are currently ineligible for both the FAS and the PPF. The schemes covered by the extension started winding up after

Further amendments to the Pensions Bill have been considered during the committee stage in the House of Lords. On 14 and 16 July 2008, debate focused on the proposed changes to the Pensions Regulator's anti-avoidance powers (see Legal update, Extending the Pensions Regulator's powers: government amendments to Pensions Bill tabled). Introducing the amendments, Pensions minister Lord McKenzie of Luton noted that the "material risk prompting these changes are those actions that singularly or collectively weaken the employer covenant standing behind the pension scheme". Acknowledging concerns expressed during the DWP's recent consultation that insufficient detail will be included in primary legislation, he announced that the government would bring forward more detailed clauses over the summer and also consult formally on draft regulations. Further, the Pensions Regulator plans to issue guidance on how it will implement the new powers. The report stage of the Bill has now been delayed until 7 October 2008. Among general comments, the minister noted that the planned removal of the "good faith" test had generated controversy, but the minister suggested that keeping this test would be inconsistent with the move to examining the effect of a transaction rather than its intent. Apparently the government is considering alternative suggestions that have been put forward. Several government amendments previously tabled were agreed in committee, including the regulation-making

The government has announced plans to amend the Pensions Bill, currently going through the committee stage in the Lords, to prevent employers offering financial inducements to their employees to opt out of membership of workplace pension schemes after the automatic enrolment requirements come into force in 2012. Amendment 106A introduces a new clause in the Bill, which provides that an employer will face a compliance notice from the Pensions Regulator if it takes action for the "sole or main purpose" of inducing an employee or worker to opt out of a personal accounts scheme or the employer's own qualifying scheme. The DWP says that inducements caught by the provision would include higher salaries or one-off bonuses. These amendments follow previous amendments, now inserted as clauses 49 to 52 in the Bill, which are designed to stop employers favouring interview candidates who will opt out of the employer's scheme (see Legal update, Government plans amendment to the Pensions Bill to prevent pensions discrimination at job interviews). See Pensions Bill: Second marshalled list of amendments to be moved in committee and Press release: Ban on encouraging or forcing workers to opt out of pension saving, DWP, 24 June 2008.

On 3 June 2008, the Pensions Bill received its second reading in the Lords. Moving the Bill, pensions minister Lord McKenzie of Luton focused on the new automatic enrolment and minimum employer contribution requirements, and the creation of personal accounts. The minister also noted the government's intentions to introduce further clauses during the committee stage, which begins on 17 June 2007. The bulk of these will be drafting amendments designed to clarify the legislation, but they will also include amendments to enable automatic enrolment to workplace pension schemes and implement further changes to the Financial Assistance Scheme for schemes that did not qualify for the FAS or the PPF, as well as extending the current restriction on annuitisation (see Legal update, The Financial Assistance Scheme (Halting Annuitisation) Regulations 2007). The minister also hinted that further amendments may be brought forward following the current DWP consultation on extending the Regulator's powers, which closes on 20 June 2008. See Lords Hansard, 3 June 2008 and Public Bills before Parliament: Pensions Bill.

The government plans to amend the Pensions Bill 2007 to allow automatic enrolment into workplace personal pensions as part of the 2012 pensions reforms. The Bill already allows for auto-enrolment into occupational pension schemes (including personal accounts) but there were concerns that extending this to contract-based schemes would breach European consumer protection directives. Until now, the understanding has been that the directives prohibit contract-based schemes from automatically enrolling employees. Instead, these schemes have to operate an opt-in method (normally meaning that an employee has to sign an acceptance letter to join). The European Commission has now confirmed to the DWP that automatic enrolment into personal pensions that are provided by the employer (such as group personal pension plans, group SIPPs and group stakeholder schemes) will not offend the EU directives. This does not include personal pension arrangements that employees have obtained for themselves (even if their employer contributes to them). For the current draft of the Pensions Bill 2007, see Public Bills before Parliament: Pensions Bill. See Press release: Millions of savers to benefit from auto-enrolment into workplace schemes, DWP, 16 May 2008.

A new version of the Pensions Bill has been published, incorporating the amendments made on the third reading of the Bill in the House of Commons. For more about these amendments, see Legal update, Pensions Bill passes third reading and moves to House of Lords. The Bill now moves to be considered by the House of Lords, on a date to be fixed. See Pensions Bill.

On 22 April 2008, the Pensions Bill received its third reading in the House of Commons. Several Opposition amendments were withdrawn or defeated. These included an attempt to fix the start date for personal accounts as 1 April 2012, to cap the annual management charge at 0.3% and to require the Personal Accounts Delivery Authority (PADA) to adhere to United Nations responsible investment principles. The Opposition also queried the extent of PADA's expenditure on external consultants. Minister for Pensions Reform Mike O'Brien said these amendments were premature, as PADA was still finalising its plans for implementing the reforms, including the timetable. He said that the government intended to introduce the reforms on time and on budget, and promised to publish a report prepared by Tim Jones, PADA chief executive, on progress in the implementation plans. The government also defeated an attempt to force it to confirm when the so-called earnings link will be restored. Mr O'Brien indicated that this would be between 2012 and 2015, depending on the state of the public finances. Several new clauses introduced by the government were added to the Bill. New clauses 17 and 19 extend the employer duties in relation to automatic enrolment and minimum contributions to Crown employees and the police respectively. New clause 18 excludes the armed forces from the reforms (including reserve forces). The Bill now moves to its first reading in the House of Lords. See Public Bills

The report stage and third reading in the House of Commons of the Pensions Bill will take place on 22 April 2008. The Bill will then move to the House of Lords. See Bills before Parliament 2007/08: Pensions Bill.

A new version of the Pensions Bill has been published, incorporating the amendments agreed during the committee stage in the Commons. Government amendments include: New clause 8, which provides that if an employee does not qualify for automatic enrolment into personal accounts or a qualifying private sector scheme because his or her earnings are below the annual £5,035 limit, the employee can require the employer to enrol him or her into a personal accounts or qualifying private scheme. The employer will not be required to make any contributions. New clauses 26 and 27, which set out transitional phasing-in provisions for the employer contribution requirements (see Legal update, Pensions Bill: government amendments agreed in committee). New clauses 49 to 52, which are designed to stop employers asking job applicants whether they plan to opt out of auto-enrolment. The Pensions Regulator is given powers to issue compliance notices to employers who contravene this obligation, and penalty notices to those that flout compliance notices (see Legal update, Government plans amendment to the Pensions Bill to prevent pensions discrimination at job interviews). New clause 108, which expands the Regulator's powers to appoint independent trustees (see Legal update, Pensions Bill: new clause will widen Pensions Regulator's trustee appointment powers). New clause 109, which gives the Regulator power to intervene if it considers that a scheme's trustees have failed to observe the

Several government amendments to the Pensions Bill have been agreed during the committee stage of the Bill in the House of Commons. New clauses introduced into the Bill include provisions on the following areas: Low earners. New clause 8 provides that if an employee does not qualify for automatic enrolment into personal accounts or a qualifying private sector scheme because his or her earnings are below the annual £5,035 limit, the employee can require the employer to enrol him or her into a personal accounts or qualifying private scheme. The employer will not be required to make any contributions. Phasing in employer contributions. As originally drafted, transitional phasing-in provisions were to be contained in regulations. But in order to clarify the requirements as early as possible, the provisions will be detailed in new clauses 12 and 13. These provide for a three-year phasing-in period for money purchase schemes: overall contributions must be at least 2% of qualifying earnings in the first year, rising to 5% in the second and 8% in the third. Of these, employers must contribute a least 1% and 2% in the first and second years, before reaching the full 3% contribution in the third. Disclosure of information. New clause 14 will amend the Pensions Act 2004 to allow HM Revenue & Customs to share information with the Pensions Regulator for the purposes of enabling or assisting the Regulator to discharge its functions. The committee's line-by-line examination

The government is planning an amendment to the Pensions Bill to prevent employers from asking applicants about their pensions at job interviews. The proposal flows from concerns that employers could undermine the new personal accounts system scheduled for 2012, which will force employers to contribute 3% of an employee's earnings to a personal account unless an employee opts out. Concerns have been raised that by quizzing candidates at the interview about opting out, employers could implement a policy of hiring only those candidates who wish to opt out of the system. It is not clear whether candidates who have been discriminated against in this way will be able to seek compensation or other redress at an employment tribunal. The Engineering Employers' Federation has written to MPs that it will oppose any clause in the bill that gives individuals a right to go to an employment tribunal. But the TUC has insisted that such a measure is vital to the success of the personal accounts system. See Commons Committee stage debate of the Pensions Bill on 15 January 2008, House of Commons, UK Parliament and Government plans Pensions Bill amendment to prevent pensions discrimination at job interviews, Personnel Today, 14 January 2008.

The Pensions Bill passed its second reading in the House of Commons on 7 January 2008. The bill was introduced in the Commons on 5 December 2007 (see Legal update, Pensions Bill published: automatic enrolment and minimum employer contributions from 2012 ), and now moves to the committee stage, which the Speaker has ruled must be concluded by 26 February 2008. During ministerial questions in the Commons, the minister for pensions reform Mike O'Brien reiterated the government's intention to introduce the new personal accounts framework, including compulsory employer contributions, from 2012 as previously promised. His comments follow the suggestion recently made by the chief executive of the Personal Accounts Delivery Authority that the reforms may have to be delayed. Separately, the House of Commons library has published a lengthy research paper which explains the background to the current pensions landscape and examines the bill's provisions in detail. See House of Commons Votes and Proceedings, 7 January 2008, Bills before Parliament 2007/08: Pensions Bill and Pensions Bill Research paper 07/94, House of Commons library, 19 December 2007.

Following last week's publication of the Pensions Bill (see Pensions Bill published: automatic enrolment and minimum employer contributions from 2012), the Department for Work and Pensions has published an impact assessment. The paper reveals the significant costs of the introduction of the personal accounts regime, automatic enrolment and minimum employer contributions. Key points are as follows: Employers are estimated to have to pay £2.9 billion in pension contributions once the new regime has been implemented. Individual contributions are estimated as £7 billion annually, and government costs are estimated at £2 billion (including tax relief, state second pension, and benefits costs). Employers will be liable to pay significant administrative costs, which will vary depending on whether they subscribe to the central personal accounts scheme or run their own qualifying scheme. Companies operating personal accounts will face costs of £300 million in the first year, which will fall to £89 million a year in the future. Companies which operate an alternative qualifying scheme will face costs of £50 million in the first year, and ongoing costs of £12 million annually. The disparity arise from the significantly greater costs involved in preparing for personal accounts, registering employees, undertaking auto-enrolment and collecting and administering contributions. The reduction in the revaluation requirements for deferred pensions that will be implemented in t

On 5 December 2007, the Pensions Bill was introduced into Parliament. The Bill implements the latest stage of the government's pension reforms. The main provisions will impose new duties on employers to automatically enrol their employees into a personal accounts scheme or their own qualifying scheme from 2012, with minimum mandatory pensions contributions, and extend the powers of the Personal Accounts Delivery Authority. The Pensions Regulator will be given a key role in policing employers' compliance with the new requirements. The Bill will also implement several measures deriving from the government's deregulatory review, allow for compensation paid by the Pension Protection Fund to be included in a pension-sharing order on divorce, and introduce further technical legislative changes.

The Pensions Policy Institute (PPI) has published an analysis of the likely impact of the introduction of personal accounts, planned for 2012. The report considers the possible effects of the introduction of the new personal accounts scheme on the number of people saving in work-based schemes and the total amount saved in these schemes. The analysis concludes that although the number of people saving in occupational pension schemes is likely to increase (possibly by up to 9 million), the overall success of the reforms depends on employers' responses. By comparing the outcome of four theoretical employer responses to the reforms with a "baseline" scenario without any reform, the PPI shows the range of potential outcomes for pension saving. According to the PPI models, if fears of employers levelling down their contributions after personal accounts are introduced prove unfounded, annual pension contributions could increase by around £10 billion. But if no employers offer more than the minimum 3%, pension contributions could be as much as £10 billion lower. If employers reduce their contributions to keep their costs constant, or if some employers close their existing schemes or reduce their contributions, overall pension contributions might still be higher than without the reforms, by between £2 and £5 billion. See Press release and Report: Will Personal Accounts increase pension saving?, PPI, 22 November 2007.

The Department for Work and Pensions has announced that the new personal accounts system that will be launched in 2012 will be regulated by the Pensions Regulator. As well as monitoring the overall system, the Regulator will be responsible for ensuring employers meet their responsibilities. The two key duties for employers will be to satisfy the new automatic enrolment requirements, and make minimum contributions of 3% of each employee's annual earnings. A further pensions bill will be laid before Parliament in the current session, implementing the next stage in setting up the personal accounts system. See Press release: The Pensions Regulator given key reform role, DWP, 16 November 2007.

On 22 October 2007, the first commencement order under the Pensions Act 2007 was made. The order brings into force, on 1 November 2007, the provisions of section 17 of the Act, together with Schedules 5 and 7. These remove the role of the Secretary of State for Work and Pensions in approving actuarial guidance. Since April 2007, responsibility for setting guidance has rested with the Board for Actuarial Standards, part of the Financial Reporting Council, and the Secretary of State's role has been redundant. For more about the Act, see Practice note, Pensions Act 2007: summary of key points. See The Pensions Act 2007 (Commencement No. 1) Order 2007 (SI 2007/3063).

On 26 July 2007, the Pensions Act 2007 received Royal Assent. In the last-minute parliamentary "ping-pong" between Houses, the government refused to accept House of Lords' amendments which would have created a pension protection lifeboat fund and unclaimed assets agency (see Legal update, Pensions Bill: Lords amendments overturned). But the government accepted an amendment which provides for post-legislative scrutiny of the operation of the Act by the end of 2014 (section 24). The government also accepted an opposition amendment that will temporarily prohibit schemes that qualify for the Financial Assistance Scheme (FAS) from buying out benefits with insurers for nine months, unless the Secretary of State for Work and Pensions approves the transaction (section 19). Additionally, the government has announced that it has accepted the recommendation made by the Young review not to enforce a cut-off date for employer insolvency (see Legal update, FAS review of scheme assets: interim report published). The government had previously decided that for schemes to be eligible for the FAS, an employer insolvency event must have occurred by 31 August 2007. We will publish a full practice note summarising the main provisions of the Act in due course. See Commons Hansard, 25 July 2007 and Pensions Bill: progress.

During its consideration of amendments made to the Pensions Bill, the House of Commons has voted to overturn several Opposition-backed amendments carried in the House of Lords. The key amendments would have created a pension protection lifeboat fund and unclaimed assets agency (clauses 24 and 25). Under these provisions, members of schemes covered by the Financial Assistance Scheme (FAS) would have received the same level of compensation afforded to members of schemes that qualify for the Pension Protection Fund. A further amendment, also reversed by the Commons, would have extended the FAS to cover solvent employers who wound up their schemes before 11 June 2003 (clause 23). During the debate, the minister for pensions reform, Mike O'Brien, reiterated the government's intention to lift FAS compensation to 90% of members' core pension benefits. He indicated that the government would also match any assets that become available as a result of the review of assets (see Legal update, FAS review of scheme assets: interim report published). Under the parliamentary "ping pong" procedure, the Bill now returns to the Lords on 23 July 2007. See Commons Hansard, 17 July 2007 and Pensions Bill: progress.

On 11 July 2007, the Pensions Bill received its third reading in the House of Lords. An amendment introduced by Lord Fowler was agreed, despite government opposition, which will provide for post-legislative scrutiny of the Bill four years after its enactment. An updated version of the Pensions Bill had previously been published following the committee and report stages in the House of Lords (see Pensions Bill). A summary of the amendments made in the Lords has also been published before the Bill returns to the Commons (see Lords amendments to the Pensions Bill). Amendments include a new clause 1(4) that was passed at the report stage on 4 July 2007. This provision will enable anyone below state pension age to pay voluntary class 3 National Insurance contributions at any time before retirement and buy additional basic state pension rights for up to nine years. Currently, individuals may only pay class 3 contributions for the preceding six years. See Lords Hansard: Pensions Bill, 11 July 2007 and Public bills before Parliament: Pensions Bill.

The Association of British Insurers, Confederation of British Industry and National Association of Pension Funds have all welcomed the government's response to the consultation on the personal accounts white paper.

The report stage of the Pensions Bill will take place in the House of Lords on Wednesday 4 July 2007. The Bill received its second reading in the Lords on 14 May 2007, and a new version has been published following amendments subsequently made in committee (see Legal update, Pensions Bill: updated version published). At the report stage, the government may attempt to remove the amendments made in committee relating to the pensions lifeboat fund (see Legal update, House of Lords votes for pensions lifeboat fund). See House of Lords, future business.

The government has published a summary of the responses to its consultation paper on personal accounts, issued in December 2006. As a result of representations received, several changes have been made to the proposed regime. The most significant is a reduction in the cap on annual contributions from £5,000 to £3,600. This move has been welcomed by employer organisations.

An updated version of the Pensions Bill has been published, following the committee stage in the House of Lords (see Pensions Bill). The new version incorporates various amendments, including several introduced by the government. Of these, the most significant relate to the existing provisions in the Bill that will abolish contracting-out of the state second pension on the defined contribution basis. In particular, most of the rules contained in existing regulations that require separate tracking of protected rights will now be removed. But the requirement that schemes should pay (or secure) dependants' pensions for surviving spouses or civil partners will be retained. The Bill also contains the new clauses relating to the pensions lifeboat fund and unclaimed assets recovery agency, inserted following the government defeat in the Lords last week (see Legal update, House of Lords votes for pensions lifeboat fund). These provisions are likely to be removed when the Bill returns to the Commons for its third reading. See Public Bills before Parliament: Pensions Bill.

The committee stage of the Pensions Bill begins in the House of Lords on Monday 4 June 2007. Various amendment papers have been lodged in advance, including several government-sponsored amendments that were announced on the Bill's second reading (see Legal update, Pensions Bill receives second reading in the House of Lords). Further amendments have been proposed by opposition members, but are unlikely to be agreed. These include: Requiring that compensation payable by the Financial Assistance Scheme should be equal to that payable by the Pension Protection Fund. Establishing a permanent Pensions Commission. Ensuring that members of all occupational or personal pension schemes receive annuities that are calculated according to unisex annuity rates. Changing the age by which scheme members must buy annuities from 75 to 85. See Public Bills before Parliament: Pensions Bill.

The Department for Work and Pensions (DWP) has announced that the new system of personal accounts, due to be introduced in 2012, will be run by an occupational pension scheme established under trust. John Hutton, Secretary of State for Work and Pensions, said that the scheme would face "the same level of regulation as all other trust-based occupational schemes". The personal accounts scheme will be run by a board of trustees, who will be independent of the government. Additionally, a members' panel will be set up to nominate a proportion of the trustees. The trustees will consult the panel on key decisions. Mr Hutton said that the government's priority was to focus the scheme on its target group: namely, employees who did not have access to a good occupational scheme. Some commentators may interpret this as an indication that the government intends to reverse its decision to increase the annual limit on contributions to £5,000, following sustained lobbying by the pensions and insurance industry (see Legal update, News round-up for the week ending 25 May 2007: Debate continues over personal accounts contribution cap). See Press release, Consumers to be at heart of new pensions saving scheme, DWP, 24 May 2007.

The Pensions Bill received its second reading in the House of Lords on 14 May 2007. The Bill next proceeds to the committee stage. Moving the motion for the second reading, Lord McKenzie of Luton announced the government's intention to make several minor amendments. The most significant will correct an unintended consequence for a small number of individuals' state pensions arising from the conversion of guaranteed minimum pensions. Individuals who already receive indexation on guaranteed minimum pension increments will continue to receive this. As previously announced in the House of Commons, clause 18 of the Bill contains provisions extending the scope of the Financial Assistance Scheme (FAS) (see Legal update, Pensions Bill receives third reading). During the debate, Opposition peers criticized the extent of the financial help available under the improved FAS. They have laid amendments, to be considered in the committee stage, that are designed to increase the compensation provided by the FAS to the level paid by the Pension Protection Fund. (See Hansard, House of Lords debates, 14 May 2007 and Public Bills before Parliament: Pensions Bill.)

The Pensions Bill is to receive its second reading in the House of Lords on Monday 14 May 2007. For a copy of the bill in the form sent to the Lords, see Pensions Bill (HL Bill 61 06-07). (See House of Lords business.)

The Pensions Bill received its third reading on 18 April 2007. The government also announced that the Financial Assistance Scheme would be extended to cover some solvent employers. Opposition amendments designed to create a pension protection lifeboat fund were defeated.

The Pensions Bill has completed its committee stage, and next moves to the report stage. In the meantime, notice of an amendment has been given to offer compensation for those individuals who fall within the judgment in R (on the application of Bradley and others) v Secretary of State for Work and Pensions. The amendments proposes extending the financial assistance scheme set up under the Pensions Act 2004. The government is unlikely to accept this clause.

The Department for Work and Pensions (DWP) has published a summary of the responses to its consultation on the pensions white paper issued on 25 May 2006. The responses broadly welcome the reform package, and the DWP has confirmed that it will press ahead with implementing the reforms as scheduled. There will be a new Pensions Bill in the next parliamentary session, and a white paper on the proposed system of personal accounts will be published in December 2006.

The Department for Work and Pensions published the latest government white paper on pensions reform today. It sets out the government's plans for reforming the state pension system and encouraging workers to save more for their retirement. The proposals include introducing a system of personal accounts with compulsory member and employer contributions, increasing the state pension age to 67 by 2044, restoring the earnings link to state pension increases from 2012 and reviewing pensions regulation and law.

The Pensions Commission chaired by Lord Turner published its second report on the reform of pension provision in the UK. As expected, it recommends increasing the state retirement age and introducing a funded national pension savings scheme. Membership of the new scheme would be automatic unless the employee opted out or the employer offered an adequate alternative pension arrangement. Contributions would be compulsory for employees and employers. The report also proposes linking state pension increases to pay, not price, inflation and reducing means-testing to a minimum.

The Pensions Commission (headed by Adair Turner) was appointed by the government to consider how best to deal with the issue of pensions and will be issuing its final report and recommendations in November 2005. It held a seminar on pensions reform on 21 June 2005. David Blunkett later suggested that employees should automatically participate in occupational pensions schemes unless they opt out.

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